LEDA wage study shows lower pay rates in Lubbock

Lubbock leaders are worried 3 percent cost-of-living raises in recent years isn’t enough to keep city employees from leaving.

But comparing Lubbock city employee pay vs. their counterparts in the private sector shows a mixed bag, with some city employees faring better than others as the city and private sector compete with oil boom jobs in the Permian Basin, an A-J Media analysis and Lubbock Economic Development Alliance study show.

The City Council last week initiated an $84,000 compensation study to see how the municipality compares to other employers.

“We haven’t had a study in many years, and we are just going to do it to see where we stand,” said Councilman Floyd Price. “We want to see how we compared to the private sector because we have a lot of employees leave to get higher pay.”

Similar to the city’s study, the Lubbock Economic Development Alliance conducts a wage and benefit analysis of the Lubbock area on a regular basis to determine the private sector’s competitiveness compared to other regions, said Jana Johnston, LEDA’s CFO.

The city-funded organization’s most recent study, published in January, surveyed 80 employers, including the city of Lubbock and Lubbock County, as well as other for-profit and nonprofit companies.

In general, the analysis showed Lubbock employers tend to pay below the average in some fields, said Duncan.

“We are a little bit lower than the state averages and definitely less than the national averages,” she said. “We are (more) competitive in some occupations and industries than in others.”

For example, Lubbock has a strong wage average in the software industry, but lower entry-level pay across the board, Duncan said.

“In some of those oil field type positions, we just can’t compete with those wages — there is just no way,” she said.

Similar to what the some local industries are competing with, complaints of losing staff to higher-paying jobs in the Permian Basin are what prompted the study by the city, Price said.

Still, compared to the average pay of some city positions, the public sector actually has more competitive salaries than some private companies.

Based on the city’s reported salaries from earlier this year, before the cost-of-living increase was added, some positions showed to be significantly more than private-sector averages.

For example, an accountant for the city has an annual salary ranging from about $42,011 to around $61,000, for a total average of a little more than $53,000.

The LEDA study showed a certified accountant to make an average of about $42,000 each year — more than $10,000 less.

The same is found in the electrician field.

In the public sector, electricians make an average of nearly $39,000, while city employees in the same position make an average of $54,000 annually.

There are other positions, however, less competitive in pay compared to private companies, specifically those that can be translated to the oil industry like certified truck drivers with commercial driver’s licenses.

“I continue to hear from department heads that they are losing people to other cities and other places of business because we can’t pay them what other places are paying,” said Councilwoman Karen Gibson. “But, everyone is having that problem — it’s not just the city.”

Many local companies are being forced to compete with the Permian Basin’s oil industry to maintain truck drivers, Duncan said, and CDL students are even being hired before they are completely certified.

The city has about two dozen open positions in the streets department, and because of the shortage of CDL-certified drivers, employees from other sections of that department had to be pulled in to help salt the roads during the winter storm last weekend, city spokesman Jeff McKito told A-J Media in an email on Sunday, Nov. 24.

Educating potential new employees about the oil industry’s cyclical economy and the possible drawbacks, including contract work that could require workers to file their own taxes, has become a major defense mechanism in the private sector, Duncan said.

“They are talking to their employees about the wage rates that we have and the structures that we have versus the structures they have in the Midland and Odessa area,” she said. “Saying, ‘If you stay here, we pay your benefits and it’s a steady job.’ ”

And the city offers a lucrative benefits package, Gibson said.

“In my opinion, compensation is not only salary, but benefits — and I mean the whole package,” she said. “Your insurance package, your retirement package and everything has to be included in that. You can’t just say salaries and be done with it.”

Though Gibson said city employees are “second to none,” she believes the council must be fiscally responsible when analyzing the results of the study, and pay raises may not be a result.

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Certainly, if I were a city employee, I would want a wage increase at every opportunity the issue was brought up.

But, second to making more money is the "perks" that come with the job. Top of everyone's list is healthcare. And second, would be retirement benefits.

I worked at the state level, years beyond when I was able to retire. My contributions to my retirement fund left me comfortable when added to my Social Security. I had many opportunities to move out of the public sector to private for more money. They didn't have plans for healthcare after retirement.

Currently, I pay about $25 per month for administrative fees. That "medigap" plan plus Medicare covers everything. I have no copays.

So here is the deal--shoot to be the top gun making big bucks, and then discover you have to pay big bucks for your healthcare later. You can have a mansion, a snazzy car, a big boat, etc, etc, etc.

If you take the money and run elsewhere, you are going to pay for it later.

I am clueless as to what Lubbock city's retirement plan looks like. My take provide an affordable healthcare program for the employee and their families, and a continuance of the same when they retire.

The city does not provide free health care benefits after retirement. I heard employee only coverage is around $550 month with a $500 deductible and 80% coverage after that. I think I was told if a retiree had a spouse covered too it was closer to $700 monthly. It is not provided at no cost to retirees.
I think I would opt for the big bucks opportunities, max out a Health Savings Account, Roth IRA and 401K. If you take the money and run.....provided one invests the money in the listed tax loophole accounts, I think a person could be way ahead.
I do know that if you work for the state for 10 years or more then retire from them they will cover your health insurance for life. The city does not do that.

With your broad background in construction, maybe you should volunteer your time to help the City of Lubbock schedule their crews so that there will be no people standing around waiting for their portion of the job to be ready. While it does seem that they overstaff, and sometimes they do, however when a crew is need to dig in a hurry, you cannot afford toe find a crew to come and do the work.

I do not have a solution myself, so therefore I cannot volunteer but apparently you can.